the staff of the Ridgewod blog
Ridgewood NJ, KB US Holdings, Inc. (“KB or the Company”), parent company of the Kings Food Markets and Balducci’s Food Lover’s Market subsidiary banners, today announced it has accepted a stalking horse bid from TLI Bedrock to purchase the Company for $75 million. To facilitate an orderly sale, KB and its subsidiaries have commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of New York (the “Court”).
“We are pleased to be moving forward with a sale so we can position Kings and Balducci’s for even greater long-term success. During this COVID crisis, our Associates and communities have demonstrated not only the viability but absolute necessity of our markets in their communities. Our sales and service have never been stronger; we are confident we will emerge from this process without missing a beat, well-positioned for future stability and success,” said Judith Spires, CEO of KB US Holdings, Inc.
In conjunction with the sale process, KB has obtained a commitment for approximately $20 million in debtor-in-possession (“DIP”) financing from its existing secured lender. Upon Court approval, the new financing, combined with cash generated from the Company’s ongoing operations, will be used to support the business throughout the sale process. KB has sufficient liquidity to meet its go-forward business obligations and will operate its business as usual and pay its business partners for goods and services provided on or after August 23, 2020, the Chapter 11 filing date.
As part of the Chapter 11 filing, the Company has filed a number of customary “first day” motions seeking authorization to maintain its operations during the court-supervised process, including authority to continue payment of employee wages and benefits, as well as post-petition obligations to its vendor community.
As part of the process, higher and better bids will be solicited, following the approval of bidding procedures under Section 363 of the U.S. Bankruptcy Code.